Kuwait's economy before and after gulf war Assignment

Kuwaits economy in the first place and after gulf fight - Assignment ExampleMost of its oil was exported to Europe and the United States (International line of products Publications 2012).Reliance of oil as the sole source of income led to over drudgery of oil in Kuwait. With large deposits, approximately 94,525 billion barrels, Kuwaiti suppressed the prices of oil in the foreign markets (CIA World Factbook). However, overrun angered the neighboring oil producers, such as Iraq, which was desperate to pay the funds it had borrowed for was. The act of suppressing outgrowth was viewed as an act of sparing sabotage.The government of Kuwaiti maintained a low value of alien debt that was manageable. The debt owed by Kuwaiti prior to the gulf war was $8billion. Although the country is oil rich, it has a small piece of arable land, thus preventing the country from relying on agricultural activities. However, the country engaged in other economic activities such as construction, manu facturing, and financial services. The geopolitical importance of Kuwait was increasing die to instability in neighboring nations. It was the preferred trade route that linked the west and the east.The hostilities that arose due to suppressed oil prices make Iraq invade Kuwait in 1990. The war devastated the oil wells of the country. According to Murdico (2004), the Iraqi troops burned-over most of the oil wells in Kuwait. The act sabotaged oil production in Kuwait for a whole year. The per capita income fell from $8967 in 1990 to $ 5508 in 1991. The war also led to an increase in international prices to over $30 per barrel, up from $20 per barrel in the oil spot market. Although the war did not last long, the effects were visible. First, most of the people ran to neighboring countries, meaning, there was no immediate resumption of production after the war. Second, the oil wells were heavily destroyed and had to be renovated.Reconstruction of Kuwait after the war cost the country a n approximated $40 billion. The